First-time Buyer Mortgages

First-time Buyer Mortgages Explained

We love working with first time buyers! We never forget how exciting it is embarking on buying your first home, but at the same time the prospect of getting a mortgage can feel really daunting.  We can help you!

One of the most important things to remember is that we work for you, not the lender.

House hunting tips: Winchester Street View

Based on your own individual circumstances we will help you understand how much you can afford to spend each month and then how much you need to borrow.  We can help you understand what types of mortgage are available and which lenders are offering the deal that’s right for you. 

We can offer you a clear understanding of the whole process and whether any Government schemes are available to assist you in buying your property.

Don’t forget! The stamp duty holiday is coming to an end!

During the Coronavirus pandemic, the government has increased the threshold at which stamp duty is paid on property sales from £125,000 to £500,000. But this increase won’t be around forever! You have until 30th June 2021 to save on the first £500,000 of your property, after which the scheme tapers back down to £125,000 by the end  of September. Make sure you allow enough time to complete the purchase of your dream home and reap the benefits.  Give us a call today to see how we can help you get the right deal.

What types of mortgages are there?

Fixed rate mortgages

A fixed-rate mortgage is a home loan where your interest rate is guaranteed to stay the same for a set period of time, giving you peace of mind because you know exactly how much your payments will be every month.

Variable rate mortgages: Tracker mortgages

In short, a tracker mortgage is a home loan where your interest rate will ‘track’ the Bank of England’s base rate, plus a set percentage. This can mean your payments will reduce as the interest rate reduces, but it can also mean they increase too.

The base rate is currently at a record low of just 0.1%, due to changes caused by the COVID19 pandemic. So, if the interest rate on a tracker mortgage was the base rate +1%, the amount of interest you would pay is 1.1%. If the base rate went up, the interest rate on your tracker mortgage would also rise.

Variable rate mortgages:
Discount mortgages

With a discount mortgage you pay the lender’s standard variable rate, with a fixed amount discounted. For example, if your lender’s standard variable rate was 5% and you had a 1.5% discount, you’d pay 3.5%.

Repayment mortgages

A repayment mortgage means as long as you meet all your payments every month, you will be repaying off part of your capital (the money you borrowed) and part of the interest rate. At the end of your mortgage term the property will be fully repaid and will be fully owned by yourselves.

Interest-only mortgages

Unlike a repayment mortgage, you only pay off the interest portion of your loan. This means you have to make sure that at the end of your mortgage term you have enough money saved to pay off the outstanding capital in one lump-sum in order to complete your mortgage agreement and own your home.

Schemes available to you as a first-time buyer

A Help to Buy: Equity Loan makes it possible to buy a home with only a 5% deposit, meaning first-time buyers are able to get themselves on the property ladder more easily.

With the government’s Help to Buy: Shared Ownership scheme you can buy your first home from as little as 25% or as much as 75%, and pay rent on the remaining percentage.

Try our mortgage calculator to get an idea of what you could borrow. No credit checks required.